The operator of MBK shopping centre in the heart of Bangkok Siam area is turning its focus to property. MBK Plc plans to spend some THB2 billion (US$65.4 million) each year in the coming years to develop retail and property projects in Bangkok and upcountry.
CEO Suvait Theeravachirakul said the new business venture will double the double the revenue contribution to 10 per cent of the company’s revenue over the next three years. According to the Bangkok Post, MBK Pls has 500 rai of land pending new projects including community malls divided into 300 rai in Phuket and 200 rai in Pathum Thani.
The company also plans to expand its financial businesses which currently include Thanachart Bank, Thanachart Leasing, Thanachart Life Assurance, Thanachart Insurance, Thanachart Securities and Thanachart Fund Management. The financial businesses make up 15 per cent of the company revenue.
“More expansions in property and financial businesses will help us reduce business risk,” said Mr. Suvait.
MBK’s revenue in the last fiscal year which ended in June 2011 was THB8.3 billion (US$287.5 million). 30 per cent came from retail, 29 per cent from the company’s packed-rice business, 15 per cent from financial services, 18 per cent from hotels, 5 per cent from residential and 3 per cent from golf courses.
The first property project under the new expansion will be a six-rai, 400-unit condominium project located on Ratchadaphisek Road with prices set at around THB2-3 million each (US$65,380-98,071). The company is awaiting the government’s decision on the THB300 wage policy before starting construction in 2012.
One billion baht will be spent on developing The Nine neighbourhood centre on Rama IX Road. The centre was built to replace the Premier Praram 9 retail project and has been open for a couple of months.
Source: Property Report
